What section of the Big Blue Swim School Franchise Agreement discusses the Brand Fund for Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ts and duties specified here.
The Brand Fund's principal purposes are to maximize recognition of the Marks, increase patronage of BIG BLUE Swim Schools, and enhance, promote, and protect the BIG BLUE Swim School brand and franchise system. Although we will try to use the Brand Fund in the aggregate to develop and implement Marketing Materials and programs benefiting all BIG BLUE Swim Schools, we need not ensure that Brand Fund expenditures in or affecting any geographic area are proportionate or equivalent to Brand Fund contributions by BIG BLUE Swim Schools operating in that geographic area or that any BIG BLUE Swim School benefits directly or in proportion to its Brand Fund contribution from the development of Marketing Materials or the implementation of programs. (In other words, the Brand Fund need not spend any specific amount in your market area.) We have the right, but no obligation, to use collection agents and institute legal proceedings at the Brand Fund's expense to collect unpaid Brand Fund contributions. We also may forgive, waive, settle, and compromise all claims by or against the Brand Fund. We assume no other direct or indirect liability or obligation to you for collecting amounts due to, maintaining, directing, or administering the Brand Fund.
We have the right at any time to defer or reduce the Brand Fund contributions of any BIG BLUE Swim School franchisee and, upon 30 days' prior written notice to you, to reduce or suspend Brand Fund contributions and operations for one or more periods of any length and to terminate (and, if terminated, reinstate) the Brand Fund. If we terminate the Brand Fund, we will either (i) spend the remaining Fund balance on permitted programs and expenditures or (ii) distribute all unspent funds to our then-existing franchisees, and to us and our affiliates, in proportion to their and our respective Brand Fund contributions during the preceding 12 months.
Local Marketing
You must spend 6% of the School's quarterly Gross Revenue on approved Marketing Materials and programs for the School. You must help us prepare for you a local marketing plan for the Local Marketing Spending Requirement. (Franchise Agreement – Section 13.D)
We have the right to determine which expenses count or do not count toward your Local Marketing Spending Requirement. Generally, Brand Fund contributions, price discounts or reductions you provide as a promotion, permanent on-premises signs, lighting, personnel salaries, administrative costs, transportation vehicles (even if they display the Marks), and employeeincentive programs do not count. If you do not spend (or prove that you spent) the Local Marketing Spending Requirement, we have the right, among other rights, to require you to contribute the shortfall to the Brand Fund. We have the right to require you to pay us the Local Marketing Spending Requirement, which we will then spend for you in your market for the materials and activities described above.
Approval of Marketing
All Marketing Materials must be legal and not misleading and conform to our policies. To protect the goodwill accumulated in the "BIG BLUE Swim School" name and other Marks, at least 30 days before using them, you must send us samples or proofs of all Marketing Materials that we did not prepare or already approve or that we prepared or approved but you want to change in any way. If we do not approve those Marketing Materials in writing within 30 days after we receive them, they are deemed disapproved for use. You may not use any Marketing Materials we have not approved or have disapproved. We have the right upon 30 days' prior written notice to require you to stop using any previously-approved Marketing Materials. (Franchise Agreement – Section 13.C)
Advertising Councils
There currently are no franchisee advertising councils advising us on advertising and marketing policies and programs. However, we have the right to form, change, dissolve, or merge any franchisee advertising council.
Advertising Cooperatives
There currently are no advertising cooperatives. However, we have the right to designate a geographic area for an advertising cooperative (a "Cooperative"). The Cooperative's members in any area are the owners of all BIG BLUE Swim Schools located and operating in that area
(including us and our affiliates, if applicable). Each Cooperative will be organized and governed in a form and manner, and begin operating on a date, we determine. There need not be any formal agreements or bylaws to administer the Cooperative. We have the right to change, dissolve, and merge Cooperatives. Each Cooperative's purpose is, with our approval, to administer advertising programs and develop Marketing Materials for the area the Cooperative covers. You automatically will become a member of any existing or new Cooperative formed in your market area and must participate in the Cooperative as we require. We have the right to require you to contribute to the Cooperative up to 4% of the School's Gross Revenue during the applicable preceding Calculation Period. BIG BLUE Swim Schools that we and our affiliates own in the Cooperative's area will contribute at the same rate.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, Section 13.B of Item 22, Contracts, details the Brand Fund. The Brand Fund is designed to enhance the Big Blue Swim School brand, increase patronage, and maximize recognition of the brand's marks. Big Blue Swim School does not guarantee that Brand Fund expenditures will be proportionate to contributions from franchisees in any specific geographic area, nor that any franchisee will directly benefit in proportion to their contribution. The Brand Fund will not be used to solicit franchisees, though it may reference the availability of franchises. Big Blue Swim School has the right to collect unpaid Brand Fund contributions, including through legal proceedings, and may also waive claims by or against the Brand Fund. The company assumes no liability for administering the Brand Fund, except as expressly provided in Section 13.B.
Big Blue Swim School can defer or reduce Brand Fund contributions for any franchisee. They can also reduce or suspend contributions and operations, or even terminate the Brand Fund, with thirty days' notice. If the Brand Fund is terminated, the remaining balance will either be spent on permitted programs or distributed to franchisees, Big Blue Swim School, and its affiliates in proportion to their contributions over the preceding twelve months.
Until the number of franchised Big Blue Swim Schools equals the number of company-owned schools, the company-owned schools are only required to match the total Brand Fund contributions made by the franchised locations. Once the number of franchised locations equals the number of company-owned locations, each company-owned location will contribute to the Brand Fund on the same percentage basis as franchisees. However, no company-owned location will contribute more than the highest-contributing franchised location. Big Blue Swim School directs all programs financed by the Brand Fund, with sole control over the Fund's activities. The Brand Fund may be used for various marketing and advertising activities, including preparing materials, digital marketing, website administration, and franchisee support. Franchisees may receive sample advertising materials at no cost and can purchase additional copies at Big Blue Swim School's direct cost.